In your interest.
Online Personal Finance Magazine
No beating about the bush.
Among our list of 86 stocks, Minda Industries did the best, up 22%, because the market was excited about its probable new large orders and overseas acquisition. High prices of crude oil meant that Cairn India, the only pure exploration listed company, rose 20%. The consensus among the steel companies and the government to lower the steel price had no negative effect on the price of...
CRR hike dampens sentiment on real estate
There have been five years of property boom in India. Rising income levels, changing demographics, cheap mortgages and a robust economic outlook had been fuelling the demand for housing. However, macro-economic fundamentals have changed in the past few months and the impact of this on the real estate market is increasingly becoming evident as we head...
Gold buffs make such arguments all the time. They work out ratios of oil and
gold or Dow Jones Industrial Average and gold to predict how high gold can go.
This book quotes many of these gold buffs (like Doug Casey and James Turk) and assembles a wide variety of information about gold and economy to tell you why you should buy what John Maynard Keynes had called the ‘barbaric relic’. The credentials of the author are not printed (“manages a financial research and advisory company”) and the book provides no long-term comparative returns between gold and other assets. Here is one. Gold was over $800 in early 1980s and is $900 now. The Sensex started at 1,000 in 1986 and is 16,000 now. You know what works over the long term. – D.B.
For the past few months, Indian investors, managers and businessmen have been rudely reminded of something that we normally find dry, forbidding and remote: macro economics. Inflation, balance of payments, fiscal deficit and GDP growth are not exciting things to talk about but, since politicians and policy-makers plan poorly, are not accountable and often erode the efficiency of many institutions, we frequently fall into an economic quagmire. At such times, suddenly, newspapers are full of dour economic headlines such as ‘fiscal deficit has reached alarming levels‘; ‘the rupee is depreciating‘; ‘inflation is shooting up’ and ‘interest rates are rising‘. At times like these, it is good to have a handy tome of economics. A Concise Guide to Macro Economics by David Moss, professor of economics at Harvard, may serve that purpose. It is a slim volume of two sections. The first one has three chapters that describe output (measuring it and why it goes up and down), money (interest rates, exchange rate and inflation) and expectations (how it influences inflation, output and other variables). The second section has articles on selected topics which are all US-centric such as history of monetary policy in the US, fundamentals of GDP accounting, reading a balance-of-payments statement and understanding exchange rates. A good primer. – D.B.